Testimony: Oversight of EPA Management of $100 Billion for Water Infrastructure and Other Projects
Description
J. Alfredo Gómez, Director, Natural Resources and Environment provides his opening statement before the Subcommittee on Oversight and Investigations, Committee on Energy and Commerce, House of Representatives. The Infrastructure Investment and Jobs Act (IIJA) and the Inflation Reduction Act (IRA) together provided about $100 billion to EPA for investments in water infrastructure, greenhouse gas reduction, and other things.
This testimony discusses the status of programs created or expanded with funds provided by the IIJA and IRA. Of the $60 billion the IIJA provided to EPA, GAO-s recent work covers the roughly $50 billion for water infrastructure investments. Specifically, our work has looked at the $43 billion for state revolving funds and $7 billion for other water related investments. This funding is being allocated to the states through programs that use formulas that are set in law. Through these programs, states can make loans for wastewater and drinking water infrastructure projects. We have identified the need for better financial indicators that show the growth of these programs and ensure the sustainability of the funds. Last year, we also recommended that Congress consider revising some of the formulas, which have not been significantly updated since 1987.
The IRA provided EPA with about $41.5 billion for grants and other investments to reduce greenhouse gas emissions and enhance climate resilience, and EPA has obligated nearly all the funds. GAO is examining how EPA made its decisions to award these funds and how it is overseeing awardees to ensure they meet IRA and grant requirements. Now that EPA has stood up programs and issued awards, it is important that EPA has the expertise and capacity to monitor and oversee them. GAO will be examining EPA's oversight of awardees and assessing how the agency safeguards taxpayer funds while meeting its program goals.
This testimony discusses the status of programs created or expanded with funds provided by the IIJA and IRA. Of the $60 billion the IIJA provided to EPA, GAO-s recent work covers the roughly $50 billion for water infrastructure investments. Specifically, our work has looked at the $43 billion for state revolving funds and $7 billion for other water related investments. This funding is being allocated to the states through programs that use formulas that are set in law. Through these programs, states can make loans for wastewater and drinking water infrastructure projects. We have identified the need for better financial indicators that show the growth of these programs and ensure the sustainability of the funds. Last year, we also recommended that Congress consider revising some of the formulas, which have not been significantly updated since 1987.
The IRA provided EPA with about $41.5 billion for grants and other investments to reduce greenhouse gas emissions and enhance climate resilience, and EPA has obligated nearly all the funds. GAO is examining how EPA made its decisions to award these funds and how it is overseeing awardees to ensure they meet IRA and grant requirements. Now that EPA has stood up programs and issued awards, it is important that EPA has the expertise and capacity to monitor and oversee them. GAO will be examining EPA's oversight of awardees and assessing how the agency safeguards taxpayer funds while meeting its program goals.
Date: Mar 03, 2025
Runtime: 00:05:18
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